AFTER 22 years at the helm of Grampian Holdings, executive chairman Bill Hughes appears ready to throw in the towel.
His strategy of transforming the Glasgow-based mini-conglomerate into a predominantly retail company centred on Edinburgh Woollen Mills has failed to boost the lacklustre share price.
This continues to bump along at around 140p, despite a steady improvement in profits since Grampian acquired full control of Edinburgh Woollen Mills two years ago.
Hughes has sold off Grampian's vetinerary medicines division and has put the group's remaining sportswear businesses on the market to focus on knitwear retailing. But he has baulked at selling or floating off the successful WH Malcolm transport business, which now sits uneasily alongside the chain of around 250 Edinburgh Woollen Mills shops.
A source close to Grampian said Hughes, 58, would probably announce plans to step down in favour of a new chief executive recruited from outwith the company at the annual meeting in June. His rolling two-year contract comes up for renewal at that point
David McGibbon, 50, the finance director, who has been with Grampian since 1984, might also depart soon to make way for fresh blood, the source added.
A spokesman for Grampian Holdings declined to comment on weekend reports that Hughes was preparing to pack his bags. Neither would two non-executive directors of the company contacted by The Herald, Sir Donald MacKay and Professor Neil Hood.
But the source said Hughes was indeed on his way out, although the board was still hunting for a replacement.
David Stevenson, 56, the founder of Edinburgh Woollen Mills, who is now an executive director on the Grampian board, was not interested in taking over the chief executive's chair, the source added.
An outsider may well find it easier than Hughes to stand up to Donald Malcolm, the obdurate 73-year-old founder of WH Malcolm, and force him to accept a demerger of the transport and retail businesses for the sake of shareholder value.
Operating profits at WH Malcolm jumped 22% to #6.8m in the year to January and the business looks well able to stand on its own two feet.
Such a separation might make the City look more favourably on the retail rump of Grampian, whose profits rose 13% to #19.3m last year. Grampian shares, which closed a 138.5p on Friday, are sitting on a miserable forward earnings multiple of just eight.
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